(Reuters) – S&P World stated on Friday it considers it a “digital certainty” that Ukraine will default on its exterior industrial obligations and reduce the nation’s long-term overseas foreign money (FC) credit standing deeper into junk territory.

The company reduce the FC ranking to “CC” from “CCC” and stated it expects Ukraine to start formal discussions on debt restructuring with its non-public collectors within the quick time period and full the method by the center of this yr.

Russia’s invasion of Ukraine in February 2022 began the deadliest battle on European soil in additional than 70 years.

“Given the substantial harm to bodily and human capital, Ukraine’s medium-term financial outlook is topic to a excessive diploma of uncertainty,” S&P stated in its report.

The company stated its outlook on Ukraine’s FC ranking was unfavourable.